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Current Attempt in Progress Ivanhoe Corporation had the following transactions pertaining to debt investments. 1. Purchased 60 Leeds Co. 8% bonds (each with a face value of $1,000 ) for $60,000 cash. Interest is payable annually on January 1,2022. 2. Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 50 Leeds Co. bonds for $52,000 on January 1,2023 . Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Current Attempt in Progress Ivanhoe Corporation had the following transactions pertaining to debt investments. 1. Purchased 60 Leeds Co. 8% bonds (each with a face value of $1,000 ) for $60,000 cash. Interest is payable annually on January 1,2022. 2. Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 50 Leeds Co. bonds for $52,000 on January 1,2023 . Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Final answer:The transactions are recorded as journal entries. Debits include Cash and Interest Receivable, and credits apply to Investment in Leeds Co. Bonds, Interest Revenue and Gain on Sale of Investments. The exact amounts depend on factors like interest rate and sale price.Explanation:The transactions for Ivanhoe Corporation pertaining to the debt investments in Leeds Co. can be journalized as follows:Purchase of 60 Leeds Co. bonds at $1,000 each would be a debit fromCashof $60,000 and a credit toInvestmentinLeeds Co. Bondsfor the same amount.Accruing interest on the Leeds Co. bonds on December 31, 2022, would account as a debit toInterest Receivableand a credit toInterest Revenue. The value would depend on the date of the accrual and the interest rate provided.On receiving the interest on the bonds on January 1, 2023, we would debitCashand credit theInterest Receivable.Finally, selling 50 Leeds Co. bonds for $52,000 on January 1, 2023 would involve debitingCashfor $52,000, debitingBond Investmentfor the book value of the 50 sold bonds, and creditingGain on Sale of Investmentsfor the amount above the book value gained from the sale.Learn more about Journal Entries here:brainly.com/question/33762471#SPJ11...